How CIOs Can Leverage Intelligent Cloud For Higher ROI
Intelligent transformation helps CIOs modernize legacy systems, adopt AI, and unlock measurable ROI from cloud investments.
As organizations increasingly adopt new technologies to drive innovation, boost efficiency, and achieve strategic goals, CIOs are under pressure to demonstrate clear return on investment (ROI).
However, many companies face a fragmented technology landscape — often the result of years of ad hoc integrations — that can significantly undermine the ROI of cloud initiatives. Disconnected systems slow down value realization, increase operational costs, and limit agility.
For CIOs leading intelligent transformation efforts, addressing this fragmentation is critical. Success depends on integrating modern capabilities like artificial intelligence into a cohesive, future-ready tech environment that supports both innovation and business outcomes.
In this Q&A, KPMG Principal Kevin Martelli explores the critical factors that influence the ROI of technology investments, strategies to overcome common pitfalls, and how CIOs can align their technology choices with broader business objectives. He also highlights how our approach in enabling intelligent transformations ensures that companies can effectively leverage technology to drive value and innovation.
1 | How does a fragmented tech landscape with disconnected systems impact the ROI of cloud investments and what strategies can CIOs use to overcome this challenge?
Many organizations operate with fragmented systems — often the result of years of ad hoc integrations — which creates a disjointed environment that’s difficult to modernize. When CIOs pursue intelligent transformation, especially with AI, they face the challenge of layering advanced capabilities onto legacy infrastructure.
These disconnected systems drive up operational costs, slow down time-to-value, and limit the ability to adopt new technologies quickly. As a result, organizations struggle to meet business objectives and respond to market changes with agility.
Our intelligent transformation approach helps companies redesign their technology architecture for greater connectivity and AI readiness. This enables faster adoption of emerging capabilities and positions organizations to keep pace with rapid technological change.
2 | How should companies differentiate between return on investment and return on objectives when evaluating their cloud investments?
When evaluating cloud investments, CIOs should distinguish between return on investment (ROI) and return on objectives (ROO) — both are essential, but they measure different outcomes.
Return on objectives focuses on whether specific transformation goals are being met. These goals often relate to technology enablement, infrastructure modernization, and scalability. For example, is the organization successfully building an AI-enabled tech stack? Is it becoming more scalable and efficient? ROO helps assess whether the transformation is delivering the intended capabilities, which can lead to internal cost savings and enhanced product or sales enablement.
AI doesn’t always give users traditional financial measures because it helps them with productivity gains such as time savings and other less tangible measures. Roo provides a different way to measure.
Return on investment, by contrast, is a more traditional financial measure. It evaluates the tangible value generated from the investment, such as reduced operational costs, increased adoption rates, improved customer engagement, or enhanced sales performance.
CIOs should track both to ensure their cloud strategy delivers on tactical goals and broader business impact.
3 | How can CIOs demonstrate the immediate and long-term value of their cloud investments? In other words, how do you demonstrate that you're getting this return on your investment?
CIOs can demonstrate the value of cloud investments by looking at both short-term operational gains and long-term strategic impact. This includes traditional monetary ROI, as well as new ways to measure value, such as gains in productivity or more efficient processes.
In the short term, value may not immediately show up on the bottom line. Instead, it often appears through improved productivity, streamlined operations, and better data alignment — indicators that the organization is becoming more efficient and agile.
Long-term value is reflected in broader cost structure improvements and increased adoption of cloud-enabled capabilities. As user engagement grows and platforms scale, organizations begin to realize deeper returns—such as reduced overhead, enhanced customer experiences, and stronger revenue enablement.
4 | What are some of the common pitfalls to avoid when making cloud investments, and how can CIOs mitigate those risks?
One key question is "build vs. buy": what services will you develop versus purchase in the cloud?
Building systems requires analysis up front to account for strategic fit and to determine if the resulting system will deliver true value. In general, buying will deliver greater and faster returns than building in house.
It's crucial to strategize which services to build internally and which to use from the cloud provider, focusing on business objectives and cost reduction. This involves identifying aspects central to your business objectives and areas where cloud services can be used to reduce overhead costs.
Another frequent misstep is underestimating the true cost of cloud initiatives. CIOs need clear visibility into the financial implications of both building and buying, including long-term maintenance, scalability, and integration costs. Without this insight, it’s difficult to tie technology decisions back to business outcomes or accurately assess ROI.
Mitigating these risks requires a strategic approach—grounded in cost transparency, business alignment, and a clear understanding of how each investment supports transformation goals.
5 | What future trends and challenges do you foresee in the cloud computing landscape and how can CIOs prepare for them?
One emerging challenge for CIOs is the expanding landscape of technology choices. Historically, the ecosystem was narrower, with fewer platforms and providers to evaluate. Today, the market is saturated—every vendor offers tools and capabilities, and cloud providers continue to introduce new services at a rapid pace.
The key challenge is navigating this complexity to make smart, strategic investments. CIOs must evaluate a broad array of options while aligning to a core set of vendors and capabilities that support long-term goals. A holistic, well-informed approach is essential to avoid fragmentation and ensure that technology decisions drive meaningful business outcomes.
6 | What is the one big issue clients are asking for help with?
The biggest issue clients are asking for help with is how to responsibly adopt and integrate emerging technologies. The pace of innovation is so rapid that many organizations struggle to keep up—let alone understand how to apply new capabilities effectively within their environments.
Beyond functionality, the core concern is security and risk. Clients want to know: How do I secure these technologies? How do I use them responsibly? How do I ensure they align with my organization’s risk profile and comply with evolving regulations?
Another major challenge is connecting legacy systems to modern platforms. Without a clear integration strategy, organizations face barriers to adoption and risk falling behind. These concerns are contributing to slower uptake of new technologies, despite their potential to drive significant value.
7 | How our solutions are differentiated or able to solve this for them.
Our solutions help clients make the most of their existing technology investments while preparing their stack to adopt emerging capabilities. Our approach focuses on enabling a future ready architecture that supports innovation without requiring a full rebuild.
For example, we help organizations deploy and scale AI-ready environments and improve data connectivity to accelerate transformation. This allows you to be able to interact with your technology stack more quickly.
From a business value perspective, we enable clients to build and operate holistic platforms that support the seamless adoption of new capabilities, driving efficiency, agility, and measurable outcomes.
8 | How is KPMG’s approach different?
While many capabilities in the market offer similar foundational tools, our approach stands apart. We focus on your desired business outcomes first, then apply the appropriate technology, always with an eye on return on investments.
We don’t simply apply generic, mass-market solutions. Rather, using the depth of our intellectual property and our functional and business domain expertise, we tailor those tools to address each client’s specific business challenges—bringing a layer of strategic insight and customization that drives meaningful results.
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